KL palm oil hit at close

KL palm oil hit at close

KUALA LUMPUR (Reuters): Long liquidation hit Malaysian palm oil futures at the close on Wednesday after players lost hope of positive news emerging in the near term.

Traders said India's Prime Minister Atal Behari Vajpayee was unlikely during his visit to Kuala Lumpur next week to grant a request by Malaysia to cut palm oil import duty to 45 percent to make it at par with soyoil.

"Hopes that the Indian Prime Minister's visit will bring positive news to the market have gone. India seems to be very determined to restrict imports," one trader said.

"I am sure this long liquidation will continue tomorrow," he added.

At the close, benchmark third-month July futures was down five ringgit at 770 ringgit ($202.63) a ton. Volume was 1,364 lots.

In the physical sector, May crude palm oil (CPO) for southern and central regions was offered at 745 ringgit a ton against bids of 740. Deals were reported at 745 for south and at 740 for central.

June CPO for the southern and central regions was offered at 765 ringgit a ton, against bids of 757.50 and trade at 760 for both regions.